Why is today an important day for Australia?
Today is an important day for Australia…
No, we are not talking about last night’s state of origin win by the NSW team or Turnball elected for a 2ndterm…
We are talking about employment and inflation, which will be released this morning…
Why are these important?
Well, higher employment creates certainty and a lower inflation number, will give our friends at the RBA some further “ammunition” to cut interest rates further, boosting spending.
Every other global central bank is cutting interest rates and sure, our interest rates are the lowest they have been on record, however, they are not low enough…
So stevens, if you’re reading this, it’s time to cut again and ensure that the Big 4 banks pass on the lower interest rates to the people of Australia ….
Our stock market is ~80% below the US on relative terms and it is time to give it a bigger push….
A fairly “quite” night last night on markets (Dow +24), however, oil (-4%) was the main loser as Brexit fears are still in play..
We are on the road today seeing clients, so no afternoon note…. But plenty going on, keeping us busy here @ Peak, as we look for the next opportunity…
“Today you may see people profit-taking ahead of financial earnings, since we've had such a nice run over the last week and a half," said Stephen Carl, principal and head equity trader at Williams Capital Group LP. "If any situation occurs, whether it's corporate earnings or something political going awry, that could exacerbate a decline."
So… What's on today?
Local: Employment report; Inflation expectations
Abroad: NZ ANZ consumer confidence; Bank of England meets;
SPI futures are 17 points higher this morning